FTX estate aiming to begin creditor repayments by the close of 2024

FTX estate aiming to begin creditor repayments by the close of 2024

FTX Bahamas properties to hit the market this month

NASSAU, BAHAMAS — The FTX bankruptcy estate is working towards repaying customers of the collapsed crypto exchange by the close of 2024. This commitment was disclosed during the inaugural meeting of FTX’s Bahamian subsidiary, which convened its first creditors’ assembly on March 15 at Baha Mar’s convention center, according to the minutes of that meeting.

The minutes of the meeting noted that “The Joint Official Liquidators (JOLs) and the Chapter 11 Debtors share the goal of making the first interim distribution to creditors with admitted claims and satisfactory KYC documentation by the end of 2024.”

Creditors were notified in February 2024 of the process for submitting claims on the Claim Portal, which went live on March 1, 2024.

FTX, headquartered in The Bahamas before its collapse, saw its co-founder and CEO, Bankman-Fried, arrested and extradited from The Bahamas in December 2022. Last year, Sam Bankman-Fried, the founder of FTX, was found guilty of defrauding customers and lenders. Bankman-Fried, subsequently charged with seven counts of wire fraud, securities fraud, and money laundering stemming from his alleged actions that defrauded FTX customers and lenders, including its affiliated hedge fund, Alameda Research, was sentenced to 25 years in prison last week.

FTX has reclaimed approximately 38 properties in The Bahamas—valued at $222 million—from Bankman-Fried and other executives. Presently, the company is preparing to sell off this real estate to aid in repaying creditors, including the thousands of defrauded customers who have filed claims totaling $16 billion. The sale of these properties is being overseen through a federal bankruptcy court in Delaware and is expected to commence in the coming weeks. The properties, set to hit the market shortly, include over two dozen luxury units in beachfront condominiums, multiple single-family lots, and extensive commercial real estate holdings around New Providence island, home to Nassau.

Luxury real estate specialist Matthew Marco told Eyewitness News: “We are excited that the subject properties will be hitting the market this month. FTX’s property listings in The Bahamas offer compelling investment opportunities. With sustained interest and a solid market foundation, we are optimistic about the continued vibrancy and stability of the Bahamian property market. We are also seeing a flood of requests from UK residents seeking alternative residency options given the upcoming non-dom status changes.”

He added, “Changes to the UK non-dom status represent a significant shift in the taxation landscape for individuals with international ties. The Bahamas represents one of the best jurisdictions in the world given its political stability, US$ currency structure, English-speaking population, globally recognized schooling, and fabulous office options together with a vibrant nightlife and convenient access to flights around the world.”